Environmental Economics

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DEFINITION of 'Environmental Economics '

An area of economics that studies the economic impact of environmental policies. Environment economists perform studies to determine the theoretical or empirical effects of environmental policies on the economy. This field of economics helps users design appropriate environmental policies and analyze the effects and merits of existing or proposed policies.

INVESTOPEDIA EXPLAINS 'Environmental Economics '

Environmental economists determine how environmental policies affect the economy. For example, an environmental economist may study the economic costs and benefits of alternative policies for issues such as water quality or managing waste.

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